As the market players are aware, in the current environment, there are several macro-economic factors which are affecting the broader momentum of stock markets. The trade battle between the US and China is one of the primary factors that have been impacting the sentiments of the market players. When the Chinese currency encountered devaluation, it increased fears that the trade battle would be escalated which could derail the prospects of global economic growth.
In the event of an economic downturn, investors decide to deploy their capital towards safer assets like gold and sell their equity holdings which leads to the sell-off. Therefore, it can be said that the investors also need to keep an eye on the bond markets. On August 12, 2019, most of the US stocks wrapped up the session in red and Dow Jones Industrial Average ended the session by falling 389.73 points or 1.48% on an intraday basis to end the session at 25,897.71. Also, S&P 500 index witnessed a decline of 35.56 points or 1.22% to end the session at 2883.09.
Macro-economic Factors and Geopolitical Tensions Might Affect Oil Prices
Macro-economic factors, geopolitical conditions as well as the trade battle between the US and China are the primary factors that have the potential to affect the oil prices largely because these can influence the demand for oil. The fears of recession can also affect the oil prices, as they put a question mark on the demand for oil.
S&P/ASX200 Ends in Red: Global Downturn Fears Might Affect Australian Markets
Performance of the Australian economy is sensitive to the overall health of the global economy and, in the event of slowdown, the broader economy might witness negative impacts. The trade battle between the US and China can also influence performance of the Australian economy. On August 13, 2019, S&P/ASX200 closed the session in red as it witnessed a decline of 21.8 points or 0.3% on an intraday basis to end the trading session at 6568.5 and, on the same day, All Ordinaries also encountered a decline of 22 points or 0.3% to close the session at 6648.1.
We will now have a look at how the stocks moved on ASX on August 13, 2019. Fortescue Metals Group Ltd (ASX: FMG) ended the session in green as the stock witnessed a rise of 3.587% and settled at A$7.220 per share, while Aurizon Holdings Limited (ASX: AZJ) wrapped up the session by rising 2.901% and settling at A$6.030 per share. On the other hand, Orocobre Limited (ASX: ORE) witnessed a fall of 6.406% to end the session at A$2.630 per share and CYBG PLC (ASX: CYB) closed at A$2.570 per share which represents an intraday fall of 6.204%.
We have provided some highlights on the stocks which are in the health-related space. To have a look at the information provided, please click here.
FMG Daily Technical Chart (Source: Thomson Reuters)
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